XN000022-1988-06-02 — Page 7

6

THURSDAY, JUNE 2, 1988

(2)

(3)

IN

IT

IS

BY

STAFF OF PROFESSIONAL, WE PROPOSE "THE DEVELOPMENT OF A

THE TWO

THE EXCHANGES, WITH INDEPENDENT EXECUTIVES IN

SETTING POLICY AND THE GOVERNING BODIES EXCHANGE

THINKING EXECUTIVES IMPLEMENTING IT." WE DEVELOP THIS

I THINK IV

AT THIS POINT VI. CHAPTERS

AND APPROPRIATE TO RECOGNISE THE CONSIDERABLE STEPS THE NEW MANAGEMENT OF THE STOCK EXCHANGE UNDER FELL AND OF THE FUTURES EXCHANGE UNDER MR AND MR PHILLIP THORPE IN CARRYING WHILE WE HAVE BEEN AT WORK.

TAKEN MR ROBERT WILFRID NEWTON OUT IMPORTANT

REFORMS

IN

SETTLEMENT WE PROPOSE "AN EXTENSION OF THE STOCK EXCHANGE

STRICTLY SHOULD BE

ENFORCED PERIOD TO THREE DAYS WHICH

CLEARING SYSTEM. AND THE EARLY DEVELOPMENT OF A CENTRAL

WHICH PROBABLY GAVE US THE IT WAS THIS RECOMMENDATION MOST DIFFICULTY. WE DISCUSS THE MATTER AT GREAT LENGTH

IS FUNDAMENTAL

THE CHAPTER V. SETTLEMENT

SYSTEMIC RECOGNITION OF THE RISKS STABILITY OF A MARKET. A FULL INVOLVED

WAS NOT ALWAYS IS VITAL. SUCH RECOGNITION PRESENT IN HONG KONG BEFORE OCTOBER.

(4)

WE PROPOSE "THE CONTINUATION EXCHANGE

CLEARING

AND ITS STOCK AND

GUARANTEE

(5)

STRENGTHEN THE RISK

ΤΟ

TO

IN

OF THE HONG KONG FUTURES

CONTRACT BUT INDEX

WITH THE SYSTEM BEING RESTRUCTURED

ARRANGEMENTS; MANAGEMENT

OF THE PARTICULAR, THE CLEARING HOUSE SHOULD BECOME PART

CLEARING EXCHANGE AND THE GUARANTEE SHOULD BR BACKED BY A

WAS WHETHER OR NOT THE MEMBERS' FUND." A KEY QUESTION HONG KONG FUTURES EXCHANGE AND THE HANG SENG INDEX FUTURES CONTRACT SHOULD CONTINUE. WE CONCLUDE IN OF CHAPTER

VI THAT

IT

SHOULD

ESSENTIAL AND OTHERS ARE DESIRABLE. DETAIL IN CHAPTERS VII AND VIII.

THE FIRST PART

BUT

SOME THEY ARE

REFORMS ARE REVIEWED IN

PROPOSE "REPLACING

TURNING TO THE STATUTORY AUTHORITY WE THE TWO COMMISSIONS AND THE COMMISSIONER'S OFFICE SINGLE

STATUTORY INDEPENDENT

WITH A THE CIVIL BODY OUTSIDE AND STAFFED BY FULL TIME SERVICE. IT SHOULD BE HEADED

(WE SUGGEST REGULATORS AND FUNDED LARGELY BY THE MARKET.

AND 3 THAT THE COMMISSION CONSIST OF 4 FULL-TIME MEMBERS

WITH ENSURING THE SHOULD BE CHARGED PART-TIME.) IT

INVESTORS. IN EXCHANGES PROPERLY EXTENSIVE RESERVE ON THE JOB." THE PROPOSAL ARE DEBATED AT LENGTH IN MOVING THE IX. OUR PRINCIPAL REASONS FOR

TO ENABLE MARKET ATTRACT

MARKETS; AND IN PARA. 3.33 "IF THE THEN, SHOULD BE INSULATED FROM

INTEGRITY OF MARKETS AND THE PROTECTION OF PARTICULAR, IT SHOULD ENSURE THAT THE REGULATE THEIR MARKETS AND SHOULD HAVE POWERS TO INTERVENE IF THEY FALL DOWN ARGUMENTS FOR THIS CHAPTER COMMISSION OUTSIDE THE CIVIL SERVICE ARE TWO :

то APPROPRIATE IT TO PAY SALARY PRACTITIONERS WITH EXPERTISE IN SECURITIES TO PROTECT THE GOVERNMENT. AS WE SAY THE SUPERVISOR FAILS GOVERNMENT STEP IN; GOVERNMENT SHOULD DAY-TO-DAY MARKET CRISES LEST THE AUTHORITY OF BE UNNECESSARILY DAMAGED."

SCALES

THEN,

AND ONLY

GOVERNMENT

/IN THE